As electric cars reach the mainstream, knowing the life left in a battery is a big factor in a vehicle’s value. The engine and transmission are major cost components in traditional cars. In the case of today’s electric vehicles (EVs), a battery pack accounts for 30 to 40 percent of the cost.
Mileage traditionally determines the remaining life and therefore value of a car or truck. But mileage alone isn’t the only factor. You have to factor in city versus highway miles and regular maintenance. Another factor: whether the vehicle has been driven in the deserts of Arizona or the snows of Minnesota. These all play a role in determining a vehicle’s condition and ultimately, its worth.
The same is true for electric vehicles. Mileage alone is not a good indication of a battery pack’s health. Considerations include ambient operating temperature and the number of times a battery has been recharged (known as cycles). There’s also the type of charging (regular Level 2 versus Level 3 DC current).
Determining a battery’s condition goes beyond the more general key measures of energy in and out and range comparison at full charge. There also has to be the ability to measure battery temperature, voltage, current, capacity, and cell resistance.
Determining the remaining useful life of a battery significantly impacts whether a vehicle should continue to be used. The other option is to scrap it, with its battery either repurposed for stationary use or recycled. Here’s where a Battery Health Score will become an important tool for consumers looking to buy, sell, or trade a pre-owned EV.
To that end, Cox Automotive Mobility (a sister division to Kelley Blue Book) recently acquired Spiers New Technologies. This company has developed software that assesses the condition and value of electric vehicle batteries. Spiers’ patented ALFRED battery decisioning platform delivers a battery health score. In addition, it creates an audit trail of battery packs and modules.
So far, Spiers New Technologies maintains a database on more than 22,000 electric vehicle battery packs, 134,000 modules, and grades on one million NiMH (nickel-metal hydride) cells. That’s the largest such database in the world.
In addition to developing this battery diagnostic software, Spiers New Technologies also repairs, remanufacturers, refurbishes, and repurposes battery packs from both hybrid and electric vehicles. Spiers provides analysis and safety screening of batteries removed from their original vehicles. The company can either refresh these packs for use in other vehicles or repurpose them for non-automotive uses.
Cox Automotive Mobility created the Battery Health Score. Kelley Blue Book will use this tool when assessing EV value, to build consumer confidence in both new and used electric cars and trucks. According to Cox Automotive research, 83 percent of consumers who aren’t interested in EVs are skeptical about battery value and life.
“We believe an independent, third-party battery health score will be a critical enabler to used EV adoption and growth, driving greater transparency and confidence in used EV transactions,” said Lea Malloy, head of research and development for Cox Automotive Mobility.
This health report is currently a part of Manheim vehicle condition reports at select auction locations — six locations with high EV volumes in California, Nevada, Pennsylvania, and Washington. And there are plans to expand to more sites. Tests are ongoing with six manufacturer clients to gather battery performance metrics from used EVs such as state of charge and energy capacity. This data will form the basis of an overall battery health score ranging from 1.00 to 5.00.
Manheim compared vehicles with the same make and model and similar mileage data, some with and some without a battery health score. This initial research reveals that vehicles with a battery health score are getting roughly five times more views and bids than those that don’t. In addition, those vehicles are selling for values that are as much as 4.5 percent higher, according to Manheim data.
